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National
Ian Johnson

Martin Lewis reveals how every home worker can claim extra cash due to coronavirus

Home workers on full pay are entitled to extra money from the Government due to the coronavirus.

Speaking to viewers of a special edition of the ITV Martin Lewis Money Show, the Money Saving Expert presenter pointed out there's actually an allowance in place to cover the increase in your bills that results from spending all your time at home.

As the Mirror reports, working out exactly how much extra you're spending on bills and other costs isn't exactly easy though - so there's a simple limit where no questions are asked.

"Your employer is allowed to pay you £6 a month tax free if forced to work from home," Martin said.

You can claim more if it's costing you more - but that's a lot more labour intensive.

But you don't actually have to go to your employer to get the money.

"You can now claim it from HMRC," he added.

Martin Lewis has shared his latest advice for Brits looking to save cash (Shared Content Unit)

Martin explained how to claim in detail in a blog post.

"If your employer won't pay expenses for your costs due to necessary working from home, but you have them, then you can ask for the amount to be deducted from your taxable income," Martin wrote.

"To make the process easy, HMRC says that claims in line with the employers' payment (ie, for £6 a week) will not need to justify that figure – meaning you won't need to keep receipts or prove information."

It's not a huge amount of cash, but it's better than nothing.

"The impact of a £6 a week claim is the tax savings, that's a gain of £1.20 a week (about £62 a year) for basic 20% rate taxpayers, and £2.40 a week (about £124 a year) for higher 40% rate taxpayers."

If you have higher costs then you can claim more, but need evidence of the cost increases.

To get it, there are two main ways.

"If you normally do a self-assessment form, you can claim on it," Martin wrote.

"Yet for most people, this will simply require filling in a P87 form."

Martin said you can do this online with a P87 form using your Government Gateway account or by filling out a postal P87 form.

"You'll be asked for your employer's name and PAYE reference (which you can find on your payslip or P60), and your job title," Martin said.

"For postal P87s, you'll also need your national insurance number."

He said the key part was the "Using your home as an office" section.

For the online form, Martin said it's easiest to put £6 for each week spent at home in the "amount you have paid" section and £0 in the "amount paid to you by your employer" section if they haven't boosted your wages.

If you're claiming through the postal form, you need to add a "using your home as an office" expense in the "Other expenses" section manually.

"Once you've submitted the claim, if you do it online you may hear back within a couple of weeks. However, obviously if HMRC is under pressure it may take longer," Martin said.

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